Why Wheels Up Experience Stock Soared Higher Today
True to its name, Wheels Up Experience (NYSE: UP) had quite the up session on the stock market Monday. The private jet charter operator saw its share price climb nearly 13% skyward on news of a fresh round of capital raising.
Before market open, Wheels Up said that a subsidiary of the company has issued equipment notes -- a form of corporate bond -- in the aggregate principal amount of $270 million. All told, the net proceeds of the issue will be around $259 million.
The equipment notes are secured by primary liens on several aircraft in Wheels Up's fleet. They mature in seven years, and their annual coupon is a fairly expensive 12%.
Source Fool.com
